Taxes for distribution from Fidelity traditional IRA

Forum|Forum|3 years ago
January 30, 2023
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In 2022 I made a distribution of $10,000 from my traditional IRA; Fidelity at the time defaulted to taking out $1,000 for federal taxes and $100 for California state taxes, now reflected in a 1099-R. But isn't this just estimated taxes, so how does Turbotax know what to do?

The distribution comes from a cash drawer with the Fidelity IRA account, which in return is fed by say the sale of stocks. Does the 8949 tax form come into play here?

DoninGA

Employee

TurboTax software knows to put the federal income taxes withheld on the Form 1099-R as a federal tax payment on the federal tax return and the state income taxes withheld on the state tax return as a state tax payment.